New information shows that cryptocurrency whales are gearing up to buy amid the Binance-FTX crisis. So when will prices go up?
Whales continue to accumulate despite Binance-FTX crisis
In recent days when the crypto market has been dominated by bears, the big investor class continues to hold stablecoins to take status. New Santiment data has revealed that whales always grow stablecoin balances in decline.
According to the analytics firm, the whales’ most preferred stablecoins were USDC and USDT. In a chart shared on Twitter, Santiment shows that whales raising $100,000-10 million have grown their USDC balance by 12.1% since the beginning of August. The information also shows that these whales increased their USDT balance by 8.6%.
Santiment did not include any random details about the stablecoin accumulation of whales. He also did not share information about the purchasing power of large investors. However, given how volatile the market is right now, it seems that whales want to wait for stablecoins as safe havens. As a result, the nascent buying spree could be a sign of volatility ahead.
Whales may be accumulating due to positive news from regulators on stablecoins. Recently, Michael Barr, Deputy Leader of the Board of Governors for Federal Reserve Control, made some positive statements about stablecoins. Barr said in October that the way for stablecoins to be used as money is clear. He also stated that other cryptocurrencies such as Bitcoin do not share the same feelings.
Despite his optimism, Barr also voiced his concerns about the dangers of using stablecoins. He stated that banks may not be able to guarantee in accordance with their legal use. In their own words:
For example, in some models under investigation, the bank may not be able to monitor who holds its tokenized liability or whether its token is used in risky or illegal activities.
Barr acknowledges that there will be ways to ensure customers comply with established clauses. Still, it remains to worry as older banks may have trouble implementing the options:
Although technical analyzes have been developed to manage these risks, it is still unclear whether banks can make such agreements by adhering to sound and sound banking practices and applicable laws.
Barr recommended that interested banks start early discussions with regulators to review these options.
Stablecoin giants announced that they had nothing to do with any company in the Binance-FTX crisis
Tether, Circle and Coinbase said the recent FTX and Alameda debacle was the result of risky practices such as misuse of user funds. In response to the outcry raised by the crypto community, Tether chief technology officer Paolo Ardoino clarified in a tweet that Tether is not affiliated with any of the troublesome firms. According to the Tether manager, Alameda has used a lot of Tether before. Koindeks.comAs you follow, the market is currently watching with concern what will happen to FTX.